Licensing films and series from other studios has been the backbone of Netflix since its inception. This statement may seem like an exaggeration nowadays, as the streaming service has started to produce its own impactful content over the years.
However, the reality is different: 45% of all views on the platform between January and June this year were for licensed content, according to The New York Times.
Although films and series from other studios never left the platform, it wasn’t until 2023 that they began to appear to subscribers again. This is because, at some point, competitors realized that they had to protect their copyrighted content to attract more users to their platforms. However, this didn’t work very well.
The beginning
Years ago, entertainment companies licensed their classics to Netflix in a mutually beneficial deal: The streaming service received popular content – like “Friends” – and, in exchange, the movie studios received a good sum of money.
However, about five years ago, the executives of these companies realized that they were giving power to a powerful rival and decided to limit content sales when they realized that they needed these films and programs to stimulate growth of its streaming services.
The goal
This restriction on the sale of content on Netflix had a direct impact on the platform, which was constantly growing and increasing its subscriber base.
However, the reality of the streaming market has begun to set in. Faced with debt and the fact that most streaming services still aren’t making a profit, movie studios like Disney and Warner Bros. Discovery have taken a step back.
They now own their biggest hits (like Disney’s “Star Wars” franchise and HBO’s “Game of Thrones”). However, they renounce other productions, such as “Dune”, “Prometheus” and “Young Sheldon”.
The future
Ted Sarandos, co-CEO of Netflix, recently commented that the availability of licenses has increased significantly in recent years. For him, the studios’ previous decision to hide the content was unnatural.
With this flexibility, movie studios are able to license content to the streaming giant for a higher profit margin – which in addition to helping resolve debts, also bolsters the production of exclusive content for their own platforms.
On the one hand, the partnership expands the catalog of films and series on Netflix. In turn, users respond by massively consuming this content – just look at the most viewed productions: in the first week of December, four of the 10 most viewed films on the platform were from Universal Pictures.
On the other hand, Netflix increasingly invests in the production of its own content to reduce its dependence on licenses. Additionally, Sarandos said the company does not have (nor does it want to create) a department to license its content to third parties.
The news that Studios have resumed licensing films and series to Netflix to raise funds appeared first on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
